* Analysts raise target to as much as $495
* UBS, Citigroup, BofA Merrill, Wedbush raise price target
* Apple shares to retrace recent weakness: JP Morgan
* iPad supply recovery likely in third qtr: BofA Merrill
* Shares up 4 pct in pre-market trade
April 21 Wall Street analysts boosted their
price target on Apple Inc (AAPL.O) shares, a day after the
consumer electronics giant posted stellar quarterly results that
trumped Street expectations.
UBS analysts raised their price target to $495, implying
that Apple shares, trading up more than 4 percent before the
bell on Thursday, will gain 45 percent on current levels.
On Wednesday, the company reported that sales of its
flagship iPhone and Mac computers scaled new heights in the
March quarter while iPad supplies could not keep up with roaring
Shares of Apple will likely retrace recent weakness that was
based on fears of weak iPhone and Mac results as well as margin
pressures from the Japan earthquake and supply chain weakness,
said J.P. Morgan Securities analysts.
They rated the stock "overweight" with a price target of
$450 and said, "The numbers have gotten too big to ignore as
Apple defies the law of gravity with 83 percent year-over-year
revenue growth," JP Morgan analysts said. "In our view, Apple is
the magical growth story in large-cap tech."
The brokerage, however, expect lingering questions over
Apple’s ability to ramp adequate iPad supply to cater to demand
and take first-mover advantage in tablets.
Separately, analysts at BofA Merrill Lynch said the
lower-than-expected sales for iPads during the quarter was
"disappointing," but noted it was "the mother of all backlogs."
They expect a recovery in iPad supply in the third quarter.
Shares of Apple had closed at $342.41 on Wednesday on the
The table below lists the price target changes on Apple
BROKERAGES PRICE TARGET RATING
BofA Merrill $465 $450 Buy
Citigroup $435 $415 Buy
UBS $495 $465 Buy
Wedbush $445 $430 Outperform
(Reporting by Tenzin Pema; Editing by Joyjeet Das)
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